Legal aid at risk, auditor-general finds

The Northern Territory Legal Aid Commission says it has been liquidating its assets in order to stay alive, after a funding arrangement with the previous Government has now been left by the wayside.

Legal Aid exists to ensure Territorians - particularly the disadvantaged - understand their legal rights and can access legal help during trials.

The Territory auditor-general's report, released today, says the Legal Aid Commission is not adequately funded by the Territory Government.

"The Commission is currently adequately funded by the Commonwealth but is inadequately funded by the Territory to fulfil its statutory obligations under the Legal Aid Act (NT) and to meet the legal needs flowing from new initiatives under Territory law," the report reads.

"The Commission has forecast a further deficit of the order of $611,000 for the year ending 30 June 2013," the report reads.

"...it is possible that the Commission may again be required to resort to the liquidation of investments to finance its operations."

Chief executive of the Northern Territory Law Society, Megan Lawton, said the Territory faced the prospect of being without legal aid from next year.

"I think it's a pretty horrifying back to the dark ages prospect for Territorians that legal aid is perhaps not possible beyond 2014," she told Kate O'Toole on 105.7 Mornings.

She said the lack of funding is putting defendants on unequal footing with prosecutors.

"The issue here is the funding for prosecution of matters hasn't diminished in the same way - prosecution isn't expected to sell off the family silver just so it can be there in court."

"I think Territorians should be extremely worried there won't be anyone there to help them should they need to front up to the court."

She said services are being cut as a result of the lack of funding.

"We're talking about families that have to confront court without legal assistance in really serious and concerning matters and I think that's very distressing."

A double-murder trial in Victoria's Supreme Court was this week put on hold indefinitely because of cuts to the Victorian Legal Aid Service.

Justice Terry Forrest ruled the accused would not receive a fair trial if it went ahead without funding from legal aid for a solicitor.